Update shared on 01 Dec 2025
Fair value Decreased 0.38%Raymond James Financial's analyst price target moved slightly lower to $183.80 from $184.50. Analysts factored in moderated revenue growth and higher discount rates, while optimism around improved organic growth, ongoing share repurchases, and positive business momentum helped offset these factors.
Analyst Commentary
Recent analyst updates for Raymond James Financial reflect a balance of optimism around the company’s growth trajectory and strategic execution, offset by cautious views about valuation and sector headwinds. Analyst actions included several upward price target revisions, new coverage initiations, and comments on business segment dynamics.
Bullish Takeaways- Bullish analysts are encouraged by the company’s ongoing share repurchase efforts. These efforts are helping maintain stable capital ratios and signal confidence in Raymond James' long-term growth strategy.
- Improved organic growth, especially within the Private Client Group, has been highlighted as a bright spot. This suggests positive momentum and effective client retention and acquisition strategies.
- Momentum across Raymond James’ business segments positions the company well heading into the next fiscal year. This is supported by healthy key indicators and a robust market environment.
- Recent quarterly results exceeding expectations, especially in transactional revenue and investment banking, point to strong execution. This further underpins upward revisions to price targets.
- Bearish analysts emphasize that current valuations are elevated, with limited clear catalysts for significant upside in the near term. This makes selectivity and disciplined growth critical.
- Some caution that the recent surge in capital markets activity, including capital raising and M&A, may be unsustainable. This could potentially temper future results as deal activity normalizes.
- Views on the company’s growth pace remain measured. Disciplined advisor recruitment supports earnings quality but contributes to slower growth compared to some peers.
- The combination of a more expensive entry point and the prospects of lower interest rates introduces near-term uncertainty, according to certain analysts. This diminishes the immediate appeal despite a generally constructive long-term view.
What's in the News
- Raymond James completed the repurchase of 2,107,000 shares for $350 million in the most recent tranche. This brings the total buyback to 7,418,996 shares valued at $1,101.6 million under the ongoing program announced in December 2024 (Key Developments).
- The company continues to seek acquisition opportunities that align with its culture and strategic goals. CEO Paul Shoukry has emphasized growth through both organic expansion and targeted acquisitions that offer attractive returns for shareholders (Key Developments).
- First National Bank of Sparta has chosen Raymond James' Financial Institutions Division to support Patton Wealth Management. This partnership broadens Raymond James’ presence in Illinois and adds approximately $261 million in client assets (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has fallen slightly, moving from $184.50 to $183.80.
- Discount Rate has increased marginally, rising from 8.46% to 8.60%.
- Revenue Growth projections have declined modestly, shifting from 9.37% to 9.20%.
- Net Profit Margin has improved slightly, increasing from 15.67% to 15.76%.
- Future P/E ratio expectation has dropped, moving from 14.81x to 14.16x.
Disclaimer
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